Recently reviewing harmonic patterns, I found that many people do not have a thorough understanding of the Shark pattern. Actually, these two patterns are quite interesting because they are the only harmonic patterns where the right side can exceed the left side, making them particularly easy to remember.

Let's start with the Shark pattern. It was discovered by Scott Carney in 2011. It resembles the Bat pattern but has a special feature—the C point surpasses the A point, creating a "breakout lower low" phenomenon, which usually indicates a strong counter-trend move. The key to the Shark pattern is the position of point D, which must fall within the 0.886 to 1.13 retracement zone of XC.

How exactly to confirm it? X is the high or low of the price, A is the end point of that move. B is more flexible; it’s recommended to be within the 0.382 to 0.618 retracement of XA. Point C must exceed A, falling between the 1.13 to 1.618 retracement levels of AB. Note that, unlike Bat or Butterfly patterns, the D point in the Shark pattern is determined by XC and should be between 1.13 and 1.618, while BC must satisfy the condition of 1.618 to 2.24.

For take profit, set T1 at 0.5 of CD, and T2 at 0.886 of CD. Stop loss is placed at point X or at 1.41 of XA.

Looking at real charts makes it clearer. In the 4-hour chart of AUD/USD, after a decline, the price starts rising, forming a classic bullish Shark pattern resembling a large M. In harmonic patterns, bullish patterns are generally large M’s, while bearish are W’s. Similar Shark pattern structures can also be seen in BTC’s 4-hour chart.

Next is the 5-0 pattern, which is quite special as it’s the only harmonic pattern with six confirmed points. The part before D is very similar to the Shark pattern and was also discovered by Scott Carney. The 5-0 indicates the first retracement of an important trend, consisting of four segments, each with specific Fibonacci values.

In 5-0, point X is the second point, and point 0 is the first. Point A is generally between 0.382 and 0.618 of 0X. Point B should be within the 1.13 to 1.618 Fibonacci extension of XA. Point C must break above the highs of A and 0, falling within the 1.618 to 2.24 extension of AB. Point D is determined by BC, falling at the 0.5 or 0.618 retracement of BC, and must satisfy the condition that AB equals CD.

Take profit is set at T1 = 0.382CD or 0.618CD, and T2 at 1CD. Stop loss is placed at the next Fibonacci level of 0.618BC or 0.786BC reversal zone.

Real chart example: the daily chart of GBP/JPY shows that after an upward move, the price retraces downward, then drops to point B, then pulls up to point C forming a large W, then declines to the 0.5 retracement of BC, where a bullish 5-0 pattern appears. Entering at D can capture subsequent moves. Similar Shark and 5-0 pattern cases can also be found on charts like Huatai Securities, US 100 CFD, and others.

Honestly, once you master these two patterns, your ability to judge trend reversals will improve significantly. I recommend practicing identifying Shark patterns across different timeframes and various instruments so you can truly apply them.